Retail therapy to to beat downturn blues

It’s a stressful time for Shruti Tiwari.

With the pink-slip sword hanging precariously on her head and the inflation leaving a deep hole in her pocket, the 24-year-old IT professional has to deal with the downturn blues both professionally and personally.

And what’s adding to her woes is the fact that her long overdue vacation is now out of her means and so is the car that she’s been eyeing for sometime.

“I was feeling quite low about the way things were going. So, one day I decided to pamper myself and I went shopping.” she says.

Tiwari is not alone in having found solace in shopping.

In fact, during these recessionary times when things aren’t just going right, many people, especially women, are turning to retail to give their moods a lift. This practice is often referred to as retail therapy by experts.

Shopping or even window shopping is believed to make people feel better and help them beat their blues.

Colourful towels, scented candles, cosmetics, body wash - all such products are said to be mood enhancers.

So at times when people just aren’t able to buy expensive stuff such as durables and cars, they are turning to these products that add a dash of ‘feel good’ in their otherwise dreary lives.

And smelling an opportunity in this adversity are retailers, who are piling up their racks with such feel-good goodies.

Abheek Singhi, partner, Boston Consulting Group India, believes it’s a good idea on the retailers’ part to stock up on these feel-good stuff.

“Big ticket items, such as white goods, may not be doing well, but consumers still would want to feel good. So, smaller ticket items that make consumers feel good should be the focus and will do well.”

Retailers seem to agree, too.

Future group is building beauty as a property and promoting Big Bazaar as a beauty destination.

Rajan Malhotra, chief executive officer, Big Bazaar, says sales of feel-good products such as cosmetics have doubled since the company started this campaign a month ago. 

“The observation regarding indulgence in lower price goods is correct. We are witnessing the trend even in other categories such as food,” he adds.

Infiniti Retail, a 100% subsidiary of Tata Sons that runs the Croma chain of stores, recently introduced unique products under its private label such as a mobile air-conditioner, wine cooler, massager seat and facial sauna.

The company says sales of such small-ticket indulgence products are going strong. Croma is claiming to have sold 1,500 units of seat massager in less than two months of its introductiozn.

According to Ajit Joshi, chief executive officer, Infiniti Retail Ltd, the company has christened this segment ‘me and myself’ since “the products such as foot massager, facial sauna and mobile phones are to pamper oneself without spending much.”

Shoppers Stop, which gets 40% of its business from such non-apparel indulgent categories, is seeing a strong growth in the segment.

“Shoppers are spending more on themselves and immediate family since spending on big ticket items is not really happening,” said B S Nagesh, chief executive officer, Shoppers Stop.

Not just retailers, the downturn has been a windfall for even spas and beauty clinics/parlours.

Spatika, a Mumbai-based spa, has seen a 30% jump in business in the last couple of months.

Jennifer Anand, owner, Spatika, says their clients include a lot of executives who are stressed out owing to their work pressure.

“This is the best place for them to rejuvenate. To make it easier on their pockets, we have come out with special packages which are cheaper than the usual, she adds.